Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Illinois Tool WorksLTS:0J8W -0.40%86 Cyclically Adjusted PB Ratio is 21.80 as of Aug. 22, 2026, which is 78% above its 10-year median of 12.24. GuruFocus rates LTS:0J8W with a GF Score™ of 86/100 and a GF Value™ of $272.41 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,159 Industrial Products companies, Illinois Tool Works ranks worse than 98.29% on this metric.
The historical rank and industry rank for Illinois Tool Works's Cyclically Adjusted PB Ratio or its related term are showing as below:
LTS:0J8W'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 5.76 Med: 12.24 Max: 22.91
Current: 21.7
During the past years, Illinois Tool Works's highest Cyclically Adjusted PB Ratio was 22.91. The lowest was 5.76. And the median was 12.24.
LTS:0J8W's Cyclically Adjusted PB Ratio is ranked worse than 98.29% of 2159
companies
in the Industrial Products industry
Industry Median: 2.14
vs LTS:0J8W: 21.70
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Illinois Tool Works's adjusted book value per share data for the three months ended in Jun. 2026 was $10.162. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $12.95 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Illinois Tool Works (LTS:0J8W) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Illinois Tool Works Cyclically Adjusted PB Ratio Related Terms
Illinois Tool Works Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Illinois Tool Works's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Illinois Tool Works Cyclically Adjusted PB Ratio Chart
LTS:0J8W vs EMR, CMI, AME: Cyclically Adjusted PB Ratio Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Illinois Tool Works Cyclically Adjusted PB Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Cyclically Adjusted PB Ratio falls into.
Illinois Tool Works Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Illinois Tool Works's Cyclically Adjusted PB Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 21.80 mean?
Illinois Tool Works (LTS:0J8W) has a Cyclically Adjusted PB Ratio of 21.80 as of Aug. 22, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Illinois Tool Works and its competitors. This is 78% above median its historical median of 12.24. Over the past decade, Illinois Tool Works' Cyclically Adjusted PB Ratio has ranged from 5.76 to 22.91. According to the industry distribution chart, Illinois Tool Works ranks #2122 out of 2159 companies in the Industrial Products industry, placing it in the top 98.3%.
Is Illinois Tool Works' Cyclically Adjusted PB Ratio too high?
Illinois Tool Works' current Cyclically Adjusted PB Ratio of 21.80 is 78% above median its 10-year median of 12.24. Over the past 10 years, this metric has ranged from a low of 5.76 to a high of 22.91. The Industrial Products industry median Cyclically Adjusted PB Ratio is 2.14. Illinois Tool Works' value of 21.80 is 918.7% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #2122 out of 2159 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Illinois Tool Works has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Cyclically Adjusted PB Ratio compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #2122 out of 2159 companies for Cyclically Adjusted PB Ratio. This places Illinois Tool Works in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.14. Illinois Tool Works' value of 21.80 is 918.7% above this benchmark. Historically, Illinois Tool Works' own Cyclically Adjusted PB Ratio has ranged from 5.76 to 22.91 over the past decade. While the company's 10-year median is 12.24 vs. the industry median of 2.14, Illinois Tool Works has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for an Industrial Products company?
The median Cyclically Adjusted PB Ratio among Industrial Products companies is 2.14, based on 2,159 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Cyclically Adjusted PB Ratio of 21.80 is 918.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Cyclically Adjusted PB Ratio is 2.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Cyclically Adjusted PB Ratio is 21.80, which is 78% above median its own 10-year median of 12.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illinois Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Illinois Tool Works (LTS:0J8W) is currently considered Fairly Valued. The stock's GF Value™ is $272.41, compared to a current price of $282.25 — trading 3.6% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 21.80, which is 78% above median its 10-year median of 12.24 and 918.7% above the Industrial Products industry median of 2.14. Illinois Tool Works' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Illinois Tool Works (LTS:0J8W), the current Cyclically Adjusted PB Ratio is 21.80 as of Aug. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Illinois Tool Works (LTS:0J8W) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of $282.25 is trading 3.6% above its estimated GF Value™ of $272.41.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for LTS:0J8W:
Cyclically Adjusted PB Ratio: 21.80 (78% above median its 10-year median of 12.24)
GF Value™: $272.41 vs. price of $282.25 (3.6% above fair value)
Industry Position: 918.7% above the Industrial Products median (#2122 of 2159)
No single metric tells the full story. See the LTS:0J8W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
86GF Score
Get the complete analysis for LTS:0J8W
Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0J8W has been successfully added to your 
